International GAAP 2021: Generally Accepted Accounting Practice under International Financial Reporting Standards

Cover Page
Title Page
Copyright Page
About this book
Preface
Lists of chapters
Volume 1
	Chapter 1 International GAAP
		1 Why International Financial Reporting Standards Matter
		2 The IFRS Foundation and The IASB
		3 The IASB’S Technical Agenda and Convergence with us GAAP
		4 The Adoption of IFRS Around The World
		5 Consistency in Application of IFRS
		6 Summary
	Chapter 2 The IASB’s Conceptual Framework
		1 Introduction
		2 Development of the IASB’S Conceptual Framework and Effective Date
		3 Contents, Purpose and Scope of the IASB’S Conceptual Framework
		4 Chapter 1: The Objective of General Purpose financial Reporting
		5 Chapter 2: Qualitative Characteristics of Useful Financial Information
		6 Chapter 3: Financial Statements and the Reporting Entity
		7 Chapter 4: The Elements of Financial Statements
		8 Chapter 5: Recognition and Derecognition
		9 Chapter 6: Measurement
		10 Chapter 7: Presentation and Disclosure
		11 Chapter 8: Concepts of Capital and Capital Maintenance
		12 Management Commentary
	Chapter 3 Presentation of financial statements and accounting policies
		1 Introduction
		2 The Purpose and Composition of Financial Statements
		3 The Structure of Financial Statements
		4 Accounting Policies
		5 Disclosure Requirements
		6 Future Developments
	Chapter 4 Non-current assets held for sale and discontinued operations
		1 Objective and Scope of IFRS 5
		2 Non-Current Assets (and Disposal Groups) Held for Sale or Held for Distribution to Owners
		3 Discontinued Operations
		4 Comparative Information
		5 Disclosure Requirements
		6 Possible Future Developments
	Chapter 5 First-time adoption
		1 Introduction
		2 Who is a First-Time Adopter?
		3 Opening IFRS Statement of Financial Position
		4 Exceptions to Retrospective Application of other IFRSs
		5 Optional Exemptions from the Requirements of Certain IFRSs
		6 Presentation and Disclosure
		7 Accounting Policies and Practical Application Issues
		8 Regulatory Issues
	Chapter 6 Consolidated financial statements
		1 Introduction
		2 Objective and Scope of IFRS 10
		3 Control
		4 Power Over an Investee
		5 Exposure to Variable Returns
		6 Link Between Power and Returns: Principal Agencysituations
		7 Related Parties and De Facto Agents
		8 Control of Specified Assets
		9 Continuous Assessment
		10 Investment Entities
		11 Future Developments
	Chapter 7 Consolidation procedures and non-controlling interests
		1 Introduction
		2 Consolidation Procedures
		3 Changes in Control
		4 Changes in Ownership Interest without A Loss Of Control
		5 Non-Controlling Interests
		6 Call and Put Options Over Non-Controlling Interests
		7 Future Developments
	Chapter 8 Separate and individual financial statements
		1 Separate and Individual Financial Statements
		2 Requirements of Separate Financial Statements
		3 Disclosure
		4 Common Control or Group Transactions in Individual or Separate Financial Statements
	Chapter 9 Business combinations
		1 Introduction
		2 Scope of IFRS 3
		3 Identifying A Business Combination
		4 Acquisition Method of Accounting
		5 Recognition And Measurement of Assets Acquired, Liabilities Assumed and Non Controllinginterests
		6 Recognising and Measuring Goodwill or A Gain in A Bargain Purchase
		7 Consideration Transferred
		8 Recognising and Measuring Non-Controlling Interests
		9 Business Combinations Achieved in Stages (‘Step Acquisitions’)
		10 Bargain Purchase Transactions
		11 Assessing What is Part of the Exchange for the Acquiree
		12 Measurement Period
		13 Subsequent Measurement and Accounting
		14 Reverse Acquisitions
		15 Push Down Accounting
		16 Disclosures
	Chapter 10 Business combinations under common control
		1 Introduction
		2 The IFRS 3 Scope Exclusion
		3 Accounting for Business Combinations Involving Entities or Businesses Under Common Control
		4 Accounting for Transactions Under Common Control (or Ownership) Involving A Newco
		5 Accounting for Transfers of Associates or Joint Ventures Under Common Control
		6 Future Developments
	Chapter 11 Investments in associates and joint ventures
		1 Introduction
		2 Objective and Scope of IAS 28
		3 Definitions
		4 Significant Influence
		5 Exemptions from Applying the Equity Method
		6 Classification as Held for Sale (IFRS 5)
		7 Application of the Equity Method
		8 Impairment Losses
		9 Separate Financial Statements
		10 Presentation and Disclosures
		11 Future Developments
	Chapter 12 Joint arrangements
		1 Introduction
		2 Objective and Scope of IFRS 11
		3 Joint Arrangement
		4 Joint Control
		5 Classification of A Joint Arrangement: Joint Operations and Joint Ventures
		6 Accounting for Joint Operations
		7 Accounting for Joint Ventures
		8 Continuous Assessment
		9 Disclosures
		10 Future Developments
	Chapter 13 Disclosure of interests in other entities
		1 Introduction
		2 Objective and Scope of IFRS 12
		3 Disclosure of Significant Estimates and Judgements
		4 Disclosure of Interests in Subsidiaries
		5 Disclosure of Interests in Joint Arrangements and Associates
		6 Disclosure of Interests in Unconsolidated Structured Entities
		7 Future Developments
	Chapter 14 Fair value measurement
		1 Introduction and Background
		2 Scope
		3 Definitions
		4 The Fair Value Framework
		5 The Asset or Liability
		6 The Principal (or Most Advantageous) Market
		7 Market Participants
		8 The Transaction
		9 The Price
		10 Application to Non-Financial Assets
		11 Application to Liabilities and an Entity’s Own Equity
		12 Financial Assets and Liabilities with Offsetting Positions
		13 Fair Value at Initial Recognition
		14 Valuation Techniques
		15 Inputs to Valuation Techniques
		16 The Fair Value Hierarchy
		17 Level 1 Inputs
		18 Level 2 Inputs
		19 Level 3 Inputs
		20 Disclosures
		21 Application Guidance – Present Value Techniques
		22 Convergence With us GAAP
	Chapter 15 Foreign exchange
		1 Introduction
		2 IAS 21: Objective, Scope and Definitions
		3 Summary of The Approach Required by IAS 21
		4 Determination of an Entity’s Functional Currency
		5 Reporting Foreign Currency Transactions in the Functional Currency of an Entity
		6 Use of A Presentation Currency Other than the Functional Currency
		7 Change of Presentation Currency
		8 Introduction of The Euro
		9 Tax Effects of All Exchange Differences
		10 Disclosure Requirements
		11 Future Developments
	Chapter 16 Hyperinflation
		1 Introduction
		2 The Requirements of IAS 29
		3 Selection of A General Price Index
		4 Analysis And Restatement of the Statement of Financial Position
		5 Restatement of The Statement of Changes In Equity
		6 Restatement of the Statement of Profit and Loss and Other Comprehensive Income
		7 Restatement of The Statement of Cash Flows
		8 Restatement of Comparative Figures
		9 Interim Reporting
		10 Transition
		11 Translation to A Different Presentation Currency
		12 Disclosures
	Chapter 17 Intangible assets
		1 Introduction
		2 Objective and Scope of IAS 38
		3 Recognition and Measurement
		4 Separate Acquisition
		5 Acquisition as Part of A Business Combination
		6 Internally Generated Intangible Assets
		7 Recognition of an Expense
		8 Measurement After Initial Recognition
		9 Amortisation of Intangible Assets
		10 Disclosure
		11 Specific Issues Regarding Intangible Assets
	Chapter 18 Property, plant and equipment
		1 Introduction
		2 The Requirements of IAS 16
		3 Recognition
		4 Measurement at Recognition
		5 Measurement After Recognition: Cost Model
		6 Measurement After Recognition: Revaluation Model
		7 Derecognition and Disposal
		8 IAS 16 Disclosure Requirements
	Chapter 19 Investment property
		1 Introduction
		2 Definitions and Scope
		3 Recognition
		4 Initial Measurement
		5 Measurement After Initial Recognition
		6 The Fair Value Model
		7 The Cost Model
		8 IFRS 5 and Investment Property
		9 Transfer of Assets to or From Investment Property
		10 Disposal of Investment Property
		11 Interim Reporting and IAS 40
		12 The Disclosure Requirements of IAS 40
	Chapter 20 Impairment of fixed assets and goodwill
		1 Introduction
		2 When an Impairment Test is Required
		3 Dividing The Entity Into Cash-Generating Units (CGUS)
		4 Identifying The Carrying Amount of CGU Assets
		5 Recoverable Amount
		6 Fair Value Less Costs of Disposal
		7 Determining Value in Use (VIU)
		8 Impairment of Goodwill
		9 Non-Controlling Interests – the Impact on Goodwill Impairment Testing
		10 Impairment of Intangible Assets with an Indefinite Useful Life
		11 Recognising and Reversing Impairment Losses
		12 Group and Separate Financial Statement Issues
		13 Disclosures Required by IAS 36
		14 Developments
	Chapter 21 Capitalisation of borrowing costs
		1 Introduction
		2 The Requirements of IAS 23
		3 Qualifying Assets
		4 Definition of Borrowing Costs
		5 Borrowing Costs Eligible for Capitalisation
		6 Commencement, Suspension and Cessation of Capitalisation
		7 Disclosure Requirements
	Chapter 22 Inventories
		1 Introduction
		2 Objective, Scope and Definitions
		3 Measurement
		4 Real Estate Inventory
		5 Recognition in Profit or Loss
		6 Disclosure Requirements of IAS 2
Volume 2
	Chapter 23 Leases
		1 Introduction
		2 Objective and Scope of IFRS 16
		3 What is a Lease?
		4 Key Concepts
		5 Lessee Accounting
		6 Lessor Accounting
		7 Subleases
		8 Sale and Leaseback Transactions
		9 Business Combinations
		10 Effective Date and Transition
	Chapter 24 Government grants
		1 Introduction
		2 Scope of IAS 20
		3 Recognition and Measurement
		4 Presentation of Grants
		5 Government Grants Related to Biological Assets in the Scope of IAS 41
		6 Disclosures
	Chapter 25 Service concession arrangements
		1 Introduction
		2 Scope of IFRIC 12
		3 The Control Model
		4 Accounting by the Concession Operator: The Financial Asset And Intangible Asset Models
		5 Revenue and Expenditure During The Operations Phase of the Concession Agreement
		6 Further Examples Illustrating The Application of IFRIC 12 and Interactions with IFRS 15 and IFRS 9
		7 Disclosure Requirements: SIC-29
	Chapter 26 Provisions, contingent liabilities and contingent assets
		1 Introduction
		2 Objective and Scope of IAS 37
		3 Recognition
		4 Measurement
		5 Cases in Which no Provision Should be Recognised
		6 Specific Examples of Provisions and Contingencies
		7 Disclosure Requirements
	Chapter 27 Revenue: Introduction and scope
		1 Introduction
		2 IFRS 15 – Objective and Overview
		3 IFRS 15 – Scope
		4 Other Income and Other Revenue
	Chapter 28 Revenue: Identify the contract and performance obligations
		1 Introduction
		2 Identify the Contract with the Customer
		3 Identify the Performance Obligations in the Contract
	Chapter 29 Revenue: Determine and allocate the transaction price
		1 Introduction
		2 Determine the Transaction Price
		3 Allocate the Transaction Price to the Performance Obligations
	Chapter 30 Revenue: Recognition
		1 Introduction
		2 Performance Obligations Satisfied Over Time
		3 Measuring Progress Over Time
		4 Control Transferred at a Point In Time
		5 Repurchase Agreements
		6 Consignment Arrangements
		7 Bill-and-Hold Arrangements
		8 Recognising Revenue for Licences of Intellectual Property
		9 Recognising Revenue When A Right of Return Exists
		10 Recognising Revenue for Customer Options for Additional Goods or Services
		11 Breakage and Prepayments for Future Goods or Services
	Chapter 31 Revenue: Licences, warranties and contract costs
		1 Introduction
		2 Licences of Intellectual Property
		3 Warranties
		4 Onerous Contracts
		5 Contract Costs
	Chapter 32 Revenue: Presentation and disclosure
		1 Introduction
		2 Presentation
		3 Disclosures in Annual Financial Statements
		4 Disclosures in Interim Financial Statements
	Chapter 33 Income taxes
		1 Introduction
		2 Objective and Scope of IAS 12
		3 Definitions
		4 Scope
		5 Current Tax
		6 Deferred Tax – Tax Bases and Temporary Differences
		7 Deferred Tax – Recognition
		8 Deferred Tax – Measurement
		9 Uncertain Tax Treatments
		10 Allocation of Tax Charge or Credit
		11 Consolidated Tax Returns and Offset of Taxable Profits and Losses within Groups
		12 Business Combinations
		13 Presentation
		14 Disclosure
	Chapter 34 Share-based payment
		1 Introduction
		2 The Objective and Scope of IFRS 2
		3 General Recognition Principles
		4 Equity-Settled Transactions – Overview
		5 Equity-Settled Transactions – Cost of Awards
		6 Equity-Settled Transactions – Allocation of Expense
		7 Equity-Settled Transactions – Modification, Cancellation and Settlement
		8 Equity-Settled Transactions – Valuation
		9 Cash-Settled Transactions
		10 Transactions With Equity and Cash Alternatives
		11 Replacement Share-Based Payment Awards Issued in A Business Combination
		12 Group Share Schemes
		13 Disclosures
		14 Taxes Related to Share-Based Payment Transactions
		15 Other Practical Issues
		16 First-Time Adoption and Transitional Provisions
	Chapter 35 Employee benefits
		1 Introduction
		2 Objective and Scope of IAS 19
		3 Pensions and Other Post-Employment Benefits – Defined Contribution and Defined Benefit Plans
		4 Defined Contribution Plans
		5 Defined Benefit Plans – General
		6 Defined Benefit Plans – Plan Assets
		7 Defined Benefit Plans – Plan Liabilities
		8 Defined Benefit Plans – Treatment of the Plan Surplus or Deficit in the Statement Of Financial Position
		9 Defined Benefit Plans – Presentation of the Net Defined Benefit Liability (Asset)
		10 Defined Benefit Plans – Treatment in Profit or Loss and Other Comprehensive Income
		11 Defined Benefit Plans – Costs of Administering Employee Benefit Plans
		12 Short-Term Employee Benefits
		13 Long-Term Employee Benefits Other than Postemploymentbenefits
		14 Termination Benefits
		15 Disclosure Requirements
		16 Possible Future Developments
	Chapter 36 Operating segments
		1 Introduction
		2 Objective and Scope of IFRS 8
		3 Identifying A Single Set of Operating Segments
		4 Measurement
		5 Information to be Disclosed About Reportable Segments
		6 Entity-Wide Disclosures for all Entities
	Chapter 37 Earnings per share
		1 Introduction
		2 Objective and Scope of IAS 33
		3 The Basic EPS
		4 Changes in Outstanding Ordinary Shares
		5 Matters Affecting the Numerator
		6 Diluted Earnings Per Share
		7 Presentation, Restatement and Disclosure
		8 Appendix
	Chapter 38 Events after the reporting period
		1 Introduction
		2 Requirements of IAS 10
		3 Practical Issues
	Chapter 39 Related party disclosures
		1 Introduction
		2 Requirements of IAS 24
	Chapter 40 Statement of cash flows
		1 Introduction
		2 Objective and Scope of IAS 7
		3 Cash and Cash Equivalents
		4 Classification In The Statement of Cash Flows
		5. Other Cash Flow Presentation Issues
		6 Additional IAS 7 Considerations for Groups
		7 Additional IAS 7 Considerations for Financial Institutions
		8 Requirements of Other Standards
	Chapter 41 Interim financial reporting
		1 Introduction
		2 Objective and Scope of IAS 34
		3 Components, Form and Content of an Interim Financial Report Under IAS 34
		4 Disclosures in Condensed Financial Statements
		5 Periods for Which Interim Financial Statements are Required to be Presented
		6 Materiality
		7 Disclosure in Annual Financial Statements
		8 Recognition and Measurement
		9 Examples of the Recognition and Measurement Principles
		10 Use of Estimates
		11 Effective Dates and Transitional Rules
	Chapter 42 Agriculture
		1 Introduction
		2 Objective, Definitions and Scope
		3 Recognition and Measurement Principles
		4 Measuring Fair Value Less Costs to Sell
		5 Disclosure
	Chapter 43 Extractive industries
		1 Introduction and Background
		2 Mineral Reserves and Resources
		3 IFRS 6 – Exploration for and Evaluation of Mineral Resources
		4 Unit of Account
		5 Legal Rights to Explore for, Develop and Produce Mineral Properties
		6 Risk-Sharing Arrangements
		7 Investments in the Extractive Industries
		8 Acquisitions
		9 Functional Currency
		10 Decommissioning and Restoration/Rehabilitation
		11 Impairment of Assets
		12 Revenue Recognition
		13 Financial Instruments
		14 Inventories
		15 Property, Plant and Equipment
		16 Depreciation, Depletion and Amortisation (DD&A)
		17 IFRS 16 – Leases
		18 Interaction of IFRS 16 and IFRS 11
		19 Long-Term Contracts and Leases
		20 Tolling Arrangements
		21 Taxation
		22 Events After the Reporting Period
		23 Glossary
Volume 3
	Chapter 44 Financial instruments: Introduction
		1 Standards Applying to Financial Instruments
		2 IAS 32
		3 IAS 39
		4 IFRS 7
		5 IFRS 9
		6 Structure and Objectives of the Standards
	Chapter 45 Financial instruments: Definitions and scope
		1 Introduction
		2 What is a Financial Instrument?
		3 Scope
		4 Contracts to Buy or Sell Commodities and Other Non-Financial Items
	Chapter 46 Financial instruments: Derivatives and embedded derivatives
		1 Introduction
		2 Definition of A Derivative
		3 Examples of Derivatives
		4 Embedded Derivatives
		5 Embedded Derivatives: the meaning of ‘Closely Related’
		6 Identifying The Terms of Embedded Derivatives and Host Contracts
		7 Reassessment of Embedded Derivatives
		8 Linked and Separate Transactions and ‘Synthetic’ Instruments
	Chapter 47 Financial instruments: Financial liabilities and equity
		1 Introduction
		2 Objective and Scope
		3 Definitions
		4 Classification of Instruments
		5 Contracts Settled by Delivery of the Entity’s Own Equity Instruments
		6 Compound Financial Instruments
		7 Settlement of Financial Liability with Equity Instrument
		8 Interest, Dividends, Gains and Losses
		9 Treasury Shares
		10 ‘Hedging’ of Instruments Classified as Equity
		11 Derivatives Over Own Equity Instruments
		12 Possible Future Developments
	Chapter 48 Financial instruments: Classification
		1 Introduction
		2 Classifying Financial Assets: An Overview
		3 Classifying Financial Liabilities
		4 Financial Assets and Financial Liabilities Held for Trading
		5 Financial Assets: The ‘Business Model’ Assessment
		6 Characteristics of the Contractual Cash Flows of the Instrument
		7 Designation at Fair Value Through Profit or Loss
		8 Designation of Non-Derivative Equity Investments at Fair Value Through Other Comprehensive Income
		9 Reclassification of Financial Assets
		10 Contracts with Insurance Risk – Interaction Between IFRS 17 and IFRS 9
	Chapter 49 Financial instruments: Recognition and initial measurement
		1 Introduction
		2 Recognition
		3 Initial Measurement
	Chapter 50 Financial instruments: Subsequent measurement
		1 Introduction
		2 Subsequent Measurement and Recognition of Gains and Losses
		3 Amortised Cost and the Effective Interest Method
		4 Foreign Currencies
	Chapter 51 Financial instruments: Impairment
		1 Introduction
		2 Scope
		3 Approaches
		4 Impairment for Corporates
		5 Measurement of Expected Credit Losses
		6 General Approach: Determining Significant Increases in Credit Risk
		7 Other Matters and Issues in Relation to the Expected Credit Loss Calculations
		8 Modified Financial Assets
		9 Financial Assets Measured at Fair Value Through Other Comprehensive Income
		10 Trade Receivables, Contract Assets and Lease Receivables
		11 Loan Commitments and Financial Guarantee Contracts
		12 Revolving Credit Facilities
		13 Intercompany Loans
		14 Presentation of Expected Credit Losses in the Statement of Financial Position
		15 Disclosures
	Chapter 52 Financial instruments: Derecognition
		1 Introduction
		2 Development of IFRS
		3 Derecognition – Financial Assets
		4 Practical Application of the Derecognition Criteria
		5 Accounting Treatment
		6 Derecognition – Financial Liabilities
		7 Cusip ‘Netting’
		8 Future Developments
	Chapter 53 Financial instruments: Hedge accounting
		1 Introduction
		2 Hedged Items
		3 Hedging Instruments
		4 Internal Hedges and Other Group Accounting Issues
		5 Types of Hedging Relationships
		6 Qualifying Criteria
		7 Accounting for Effective Hedges
		8 Subsequent Assessment of Effectiveness, Rebalancing And Discontinuation
		9 Interest Rate Benchmark Reform
		10 Presentation
		11 Macro Hedging
		12 Alternatives to Hedge Accounting
		13 Effective Date and Transition
		14 Main Differences Between IFRS 9 and IAS 39 Hedge Accounting Requirements
	Chapter 54 Financial instruments: Presentation and disclosure
		1 Introduction
		2 Scope of IFRS 7
		3 Structuring the Disclosures
		4 Significance of Financial Instruments for an Entity’s Financial Position and Performance
		5 Nature and Extent of Risks Arising from Financial Instruments
		6 Transfers of Financial Assets
		7 Presentation on the Face of the Financial Statements And Related Disclosures
		8 Effective Dates and Transitional Provisions
		9 Future Developments
	Chapter 55 Insurance contracts (IFRS 4)
		1 Introduction
		2 The Objectives and Scope of IFRS 4
		3 The Definition of an Insurance Contract
		4 Embedded Derivatives
		5 Unbundling of Deposit Components
		6 Discretionary Participation Features
		7 Selection of Accounting Policies
		8 Changes in Accounting Policies
		9 Insurance Contracts Acquired in Business Combinations and Portfolio Transfers
		10 Applying IFRS 9 with IFRS 4
		11 Disclosure
		12. Future Developments
	Chapter 56 Insurance contracts (IFRS 17)
		1 Introduction
		2 The Objective, Definitions and Scope of IFRS 17
		3 The Definition of an Insurance Contract
		4 Separating Components from an Insurance Contract
		5 Level of Aggregation
		6 Initial Recognition
		7 Measurement – Overview
		8 Measurement – General Model
		9 Measurement – Premium Allocation Approach
		10 Measurement – Reinsurance Contracts Held
		11 Measurement – Contracts with Participation Features
		12 Modification and Derecognition
		13 Acquisitions of Insurance Contracts
		14 Presentation in The Statement of Financial Position
		15 Presentation in The Statement of Financial Performance
		16 Disclosure
		17 Effective Date and Transition
		18 Future Developments
Index of extracts from financial statements
Index of standards
Index
EULA